Royalties are Great as Additional Income
Residual Income is a Reliable Source of Income
Money is never enough and additional income is always welcome. No matter how much an individual makes, his or her needs (or maybe whims?) seem hard to feed. That is why any new sources of additional income are always good to know and taken into account.
There are many ways to make an additional income. Some of them involve investment or require being an owner of the thing one plans to rent/sell. Others, for instance residual income from writing, designing, etc. don't require an upfront investment and they could prove to be a great source of additional income.
Why Royalties Make a Great Additional Income
One of the best things about royalties is that they come without any effort – after the initial hard work to create the piece, of course. Well, this is a bit of an exaggeration because nobody gives money for free but compared to other ways to make an additional income, royalties are a relatively easy way to make some extra money.
Many people prefer an upfront payment to royalties. While it is true that there is a lot of insecurity around royalties – i.e. there is no guarantee that the money will continue to pour in the future, in many cases royalties bring more money than flat upfront payment. In a sense, royalties are a compensation for the taken risk.
Can Royalties Become a Full-time Income?
For many people royalties are mainly a side income but it is not an exception to meet freelancers for whom royalties are more than half of the income or even constitute a full-time income on their own. It is possible to live only on royalties but it takes time to achieve this. Additionally, there is no guarantee that the money will keep flowing. The fact that many people live on royalties is great but a freelancer should never count on that.
Royalties are a great source of income but as with many things in life one can never be sure when the stream will go dry. It is the same as with the other sources of income.
For instance, consider a stable job (what's that?). A person works with a pompous company, a person looks important, he or she is paid a lot and all of a sudden, he or she becomes jobless. Can one call this secure income? Of course not.
That is why it is important to diversify one's income. A full-time job and some royalty-paying side gigs, or some small business gives more income security than any other combination (except maybe a billionaire uncle).
In the beginning it might feel tough but in the long run royalties are great as additional income. The more works an author accumulates and the more he or she promotes them, the better. Shortly money will slowly start to pour and in some time royalties will become a tangible stream of additional income.
Additional Income Is Always Great
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